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New ITC set off rules...query

28 February 2019

the new rule talks about manner of setting off itc .

my query--- whether it is written in any section that WHICH OUTPUT TAX we need to set off first ?.
that is.....for eg
If i have igst input , and
igst,cgst,sgst output , then....

can i first adjust igst input against sgst output????

thanks in advance

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8 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 28 February 2019

5 Like

Vaibhav Agarwal (Student) (69 Points)
Replied 28 February 2019

that is understood sir.......my query is .......igst ki input....pehle konse output se setoff kre.....iska koi rule h kya

Mohammad Azam (Acoountant) (56 Points)
Replied 28 February 2019

Yes ... it will be utilize at this manner (1) output IGST (2) output CGST (3) Output SGST..................

1 Like

Priya Kashyap (Student) (7048 Points)
Replied 28 February 2019

Deepak Gupta had the explanation in a
very orderly manner nice

CA.Pankaj Rawat (Chartered Accountant) (1381 Points)
Replied 28 February 2019

dear vaibhav Input igst will be sett off in this sequence (1) Output Igst (2) Output Cgst (3) Output Sgst

1 Like

M.M Sachora (Tax Professional & Advisor) (1421 Points)
Replied 28 February 2019

Following Rule under GST act Talks about ITC set off..
Changes in GSTR 3B from Feb 2019 onwards (ITC Rules in GSTR 3B for set off Tax credit.)

The government has amended CGST Act 2017 vide CGST Amendment Act 2018 with various changes w.e.f and one of the important amendment was made in Section 49 of CGST Act by introducing new section 49A & 49B after the section 49, which is as under:

49A. Notwithstanding anything contained in section 49, the input tax credit on account of central tax, State tax or Union territory tax shall be utilized towards payment of integrated tax, central tax, State tax or Union territory tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilized fully towards such payment

Utilization of input tax credit

49B. Notwithstanding anything contained in this Chapter and subject to the provisions of clause (e) and clause (f) of sub-section (5) of section 49, the Government may, on the recommendations of the Council, prescribe the order and manner of utilisation of the input tax credit on account of integrated tax, central tax, State tax or Union territory tax, as the case may be, towards payment of any such tax.

As per new changes Section 49 (5) of CGST Act 2017 speaks about manner of utilizing Input Tax Credit (ITC) for payment of GST output Tax liability, e.g IGST can be Set off against IGST and then CGST and SGST, CGST can be set off against CGST and then against IGST, and SGST can be set off against SGST and then against IGST.

NOTE: If you satisfy with my reply kindly like my comment it will increase motivation to me help other people

1 Like

Sajal Mandal (294 Points)
Replied 28 February 2019

you have to first IGST input with IGST output, then remaining (if any) adjust with CGST and then remaining (if any) adjust with SGST.

CA RAJ SHAH (Chartered Accountant) (60 Points)
Replied 01 March 2019

Please find the attached sheet(in editable form) prepared by our firm which will be useful to our fellow CA Colleagues for preparing monthly GST Summary as per new set off rules which are applicable w.e.f 01/02/2018.

Please dont forget to post your suggestionsor feedback to us.

Regards,

CA Raj Shah

(M) 9662932401

Attached File : 1420383 20190301121623 revised gst template sheet.xlsx downloaded: 178 times

1 Like